Insurance Tips When Buying a New or Used Car

30 Jan 2024
Insurance Tips When Buying a New or Used Car

Buying a new or used car is an exciting journey, but it comes with its fair share of responsibilities. One of the most crucial tasks that often gets overlooked during test drives and negotiation is securing the right insurance coverage for your new wheels. 

Why is Insurance Important?

  1. Legal Requirement: In Canada, it’s a mandate that all vehicles on the road be insured. Driving without proper coverage can lead to fines, license suspension, or even legal trouble. Therefore, getting insurance isn’t just a choice; it’s a legal obligation.
  2. Financial Protection: Accidents can happen to even the most careful drivers. Without insurance, you can find yourself facing astronomical bills. Proper coverage ensures that you won’t have to dig deep into your pockets in case of an unforeseen event.
  3. Peace of Mind: Knowing you’re covered provides peace of mind. Whether it’s a minor fender bender or a major collision, insurance can help ease emotional and financial stress.

Tips for Getting Insurance When Buying a New or Used Car

  1. Start Early: Don’t wait until the last minute to secure insurance. You’ll need coverage before you can legally drive your new car off the lot. Contact your insurance advisor well in advance to compare quotes and policies.
  2. Research and Compare: Not all insurance policies are created equal. Take the time to sit with your insurance advisor to compare coverage options and pricing.
  3. Determine Your Coverage Needs: Consider your driving habits, the value of your car, and your budget when selecting coverage. Common coverage types include liability, collision, and comprehensive. Tailor your policy to your unique situation.
  4. Bundle Policies: If you already have insurance for your home, rental, or another vehicle, inquire about bundling your policies with the same provider. This can lead to discounts, making your insurance more affordable.
  5. Understand Deductibles: The deductible is the amount you pay out of pocket before insurance kicks in. Higher deductibles generally lead to lower premiums, but it also means you’ll pay more in the event of a claim. Choose a deductible that aligns with your financial comfort zone.
  6. Keep a Clean Driving Record: Maintaining a good driving record can lead to lower insurance premiums. Avoid accidents and traffic violations whenever possible.
  7. Ask About Discounts: Many insurance companies offer various discounts, such as safe driver discounts and winter tire discounts. Inquire about these options to save money.
  8. Read the Fine Print: Before signing on the dotted line, thoroughly review the insurance policy. Understand the terms, conditions, and any exclusions. Ask questions if anything is unclear.
  9. Update Your Insurance as Needed: As your car ages or your circumstances change, revisit your insurance policy. You might be able to reduce coverage or adjust your policy to better suit your current situation. 

Getting insurance when buying a new or used car isn’t just necessary – it’s a vital step in protecting yourself, your vehicle, and your finances. By starting early, researching your options, and making informed decisions, you can ensure that your car ownership journey is not is not only exciting but also worry-free.

A broker at The Standard can serve as a trusted advisor who is devoted to safeguarding your interests and providing you with peace of mind. Reap the rewards of dealing with a dedicated insurance advisor and request a quote today! 

Janis is a dedicated leader with over 30 years at The Standard. Janis's exceptional leadership and strategic thinking have been pivotal to The Standards success, making our workplace a thriving community. Her wealth of experience and strategic thinking have played a vital role in delivering an unparalleled service to our clients.

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